Revenue- and Profit-Maximising Price: The Markup Rule
This lesson is part of the course
In this lesson
You find the revenue- and the profit-maximising price of the House Blend on a linear demand line, confirm the markup rule (Lerner index = −1 ÷ e) and apply it to a constant-elasticity model.
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Lessons in this course
- Arc vs Point Elasticity from Real Price Changes Locked
- Log-Log Regression: Elasticity as a Slope Locked
- Controlling for Promotions & Seasonality with LINEST Locked
- Cross-Price Elasticity: Substitutes and Competitors Locked
- Revenue- and Profit-Maximising Price: The Markup Rule Locked
- Demand Curve & Profit Curve: Finding the Peak Locked
- Segment Elasticities: Online vs Store Locked
- Price Test Design & Reading the Results Locked